LOYOLA COLLEGE (AUTONOMOUS), CHENNAI –600 034
M.com., DEGREE EXAMINATION – COMMERCE
FOURTH SEMESTER – APRIL 2004
CO 4950/C 1051 – MATERIALS MANAGEMENT
03.04.2004 Max:100 marks
1.00 – 4.00
SECTION – A
Answer ALL questions (10 ´ 2 = 20 marks)
- What is Materials Research? State the stages involved in it.
- What you meant by Inventory and Inventory control?
- Define Materials Management and explain its importance briefly.
- What is the right quality? Give example.
- Differentiate the Implied conditions from Implied warrantee.
- What is meant by Agency by Holding out?
- What is value analysis? Explain EXCHANGE technique.
- What is Budget and Budgetary control?
- How is the scrap different from surplus.
- What is the system contract?
SECTION – B
Answer any FIVE questions (5 ´ 8 = 40 marks)
- Explain the various Functions of Materials Management.
- Bring out the differences between the Bin card and Stores ledger.
- Compute the various stock levels from the following:
Normal usage : 60 units
Minimum usage : 30 units
Maximum usage : 90 units ; Delivery Period 4 to 6 weeks
Value of item Rs.120 each ROQ: 250 units.
- Explain how is the right quantity and quality determined.
- What is materials planning and explain the various factors affecting the same?
- Suggest the guidelines for good vendor and vendee relations.
- Bring out the circumstances wherein the materials are to be purchased made.
- Teak wood company has an expected usage of 50,000 units of certain materials during the next year. The cost of processing an order is Rs.20/- and the carrying cost per unit is Rs.0.50. Lead time on an order is 5 days. The company has to keep a reserve supply of 2 days usage. Calculate i) EOQ ii) Re order point using the formula.
SECTION – C
Answer any TWO questions (2 ´ 20 = 40 marks)
- Construct an ABC table from the following particulars given: (both table and graph) and state the controlling measures.
| Units required | Unit price | |
| 1 | 15,000 | 1.50 |
| 2 | 10,000 | 30.40 |
| 3 | 30,000 | 1.70 |
| 4 | 16,000 | 5.50 |
| 5 | 10,000 | 0.65 |
| 6 | 5,000 | 51.20 |
| 7 | 14,000 | 5.14 |
- a) What is perpetual inventory system and explain the process and its importance.
- b) Explain the various Implied Conditions.
- a) What are the principles of value analysis.
- b) Prepare the Material Budget for 15,000 units of a Product A of Mohan & Company Ltd. form the following.
| Materials | Estimated requirements for 1000 Units in Kg. | Estimated Price per Kg. |
| X | 10,000 | 25 |
| Y | 20,000 | 35 |
| Z | 40,000 | 65 |
| Materials | Estimated Stock (K.g.) | |
| on 1.1.95 | on 31.12.95 | |
| X | 30,000 | 15,000 |
| Y | 40,000 | 20,000 |
| Z | 40,000 | 50,000 |